THE AIM OF THE EXTENDED DURATION OF A COMMERCIAL TRANSACTION

Abstract

The researchers support the view that the law cannot predict the circumstances under which the commercial transaction (contract) performance may become too cumbersome, and cannot speci cally determine what remedies to use to protect the contracting parties from risks. It would require a  exible approach and further development of this issue, and the regulatory framework for minimizing a possible unlawful conduct through application of legal remedies. Regulatory framework is not suf cient where the obligations of one contracting party have become excessively onerous due to changes in circumstances and does not determine when the parties have an obligation to negotiate with a view to amend provisions of the contract, or to agree on the contract extension. There is a necessity to include tougher sanctions in the contract in the case of default, which will provide the creditor with the right to be compensated for damage caused by certain time limits. The following considerations may be used as guidlines as to the nature of circumstances justifying extention: 1) changes in the circumstances occurred after the conclusion of the contract, b) changes in the circumstances could not have been foreseen at the moment of concluding the contract, c) the offender had taken the risk to change the circumstances on his own. The author concludes that the extension of the duration of a commercial transaction may have both legal and illegal aims. When in the case of a commercial transaction, the extension is used lawfully, it means that the principles of commercial law are respected, which will play a crucial role in a healthy functioning of commercial relations. It will help to promote business uniformity and predictability, which in turn, will help to speed up the commercial circulation. While these principles are not formulated in writing, that is, not directly recorded in the Commercial Law, however, one can say that they have generally binding nature. So the main focus of why it is admissible to support a contract term extension is justi ed by the creation of a situation, when the debtor is aware that if during the extension period he does not prevent the violation of the other partys rights, more severe measures against him can be used and will be used, including the contract unilateral termination or through the courts asking for cancellation of the contract.